The LIC cancer care policy is a Health Insurance plan. In this plan, you give yearly premium and get coverage of cancer. If you are detected with cancer the LIC would give you the promised sum assured.
The sum assured for this plan can be from the 10 lakhs to 50 lakhs rupees. You can also choose the option of increasing sum assured. In this option, the sum assured increases 10% every year, until 5 years.
The amount of sum assured is not related to the treatment expense. You would get the full amount. To get the claim amount, cancer should be sure.
The minimum age to subscribe this policy is 20 years. You can take this policy up to the age of 65 years. The maximum period for this plan is 30 years while the minimum period is 10 years. The policy can continue until the age of 75.
The good thing about the LIC cancer cover plan is that the premium does not change at least for 5 years. The annual Premium for this plan would be about 1700 rupees for the sum assured of 10 lakh rupees.
The LIC’s Cancer does not give tax benefit under section 80C. Rather you can save tax under section 80D.
You can buy this health insurance plan either from an LIC agent or from the online portal. However, if you purchase it online, you would get a rebate of 7%.
About LIC Cancer Cover
The LIC mostly launches the life insurance plans but this time it has come with the Health insurance policy. Generally, General insurance companies do business in health insurance. However, the LIC cancer cover is distinct in the amount of cover. Unlike other health insurance plan, LIC gives you the whole assured amount at once. It does not care about the actual expense. In this sense, LIC cancer cover is similar to the life insurance.
Also, the LIC cancer cover is a long-term plan. This plan does not renew after every one year. You would know that Health insurance plans get renewed after every one year. But the LIC cancer cover is a long-term policy. You can take it for 30 years.
The Premium of LIC cancer cover remains same during the policy period. However, LIC has said that it may review the premium rates after five years. But the reviewed price would also stay at least for 5 years.
Payment of Sum Assured
The minimum sum assured of this cancer policy is ₹10 lakhs. You can take a cover of up to ₹50 lakhs. If you are detected with cancer, you would get the promised sum assured.
You have two option of the sum assured.
level sum assured- the basic sum assured would remain same for the whole policy period.
Increasing Sum Assured – The basic sum assured increases every year. The increase would be 10% per year. The increment goes on for first five years. Once cancer is detected, the increment of sum assured halts. The sum assured does not increase after 5 years.
Claim of Cancer
You can claim the basic sum assured after the detection of cancer. Please note, cancer should be determined to get the claim amount. You must read the exclusions of the LIC cancer cover.
The LIC gives cancer claim in two ways. You would get lower amount if the cancer is in the early stage.
Benefits For Early Stage Cancer
If the cancer is in the early stage, the benefits would be less. The LIC has defined the early stage cancer. I have given these details at the end of the post. Following are the benefits for early-stage cancer.
- You would get only 25% of the sum assured.
- You are not required to pay the premium. This waiver is given maximum for 3 years.
Benefits For Major Stage Cancer
If you are diagnosed with advanced stage cancer, you would get more benefits. The LIC has also defined the Major stage cancers. The benefits are given below.
- You would get the full sum assured. If you have opted for the increasing sum assured, you would get the enhanced amount.
- The LIC would pay 1% of the sum assured each month. This payment would be for 10 years irrespective of the survival of the Life Insured. The monthly payment would go on even after the policy period or death of the policyholder.
- After the detection of cancer, you need not pay the further premiums. The LIC has waived the premium.
Eligibility For Cancer Cover of LIC
- Minimum entry age: 20 years (Completed).
- Maximum entry age: 65 years (Nearest Birthday)
- Minimum cover ceasing age: 50 years
- Maximum cover ceasing age: 75 years
- You can take this coverage only for yourself. The policyholder should be the citizen of India.
- You should not have cancer at the time of taking this plan.
New LIC Policy: LIC Jeevan Shiromani Policy Details
The premium rate of this plan is different for male and female. In fact, LIC cancer cover is costlier for the women. The premium for the female is about 2 times of the male.
The premium is also higher if you opt for the increasing sum assured.
The LIC gives 7% rebate on the premium if you buy this plan online. It is one of the few plans of LIC which is available online.
The LIC decides the premium for the full term. However, it can review the premium after the 5 years of the policy. This review would be based on the experience of LIC for this plan. It would not be related to you. The change would be for everyone.
If you pay half yearly, the premium would be 2% higher.
Sample Tabular Premium
To understand the cost of this plan, you can go through the sample tabular premium. You can use these tables to calculate the premium. Thes values don’t include the GST. You can add GST of 18% at the end.
Premium Chart For Fixed Sum Assured
This premium rate is for the fixed sum assured. The sum assured would remain same throughout the policy period.
|Cancer Cover Premium on Per Thousand Sum Assured|
|Age (Years)||Policy Term (Years)|
Premium Chart For Increasing Sum Assured
If you want that your sum assured increases with time, you should opt for the increasing sum assured. This strategy is useful considering the rising health cost. However, you have to pay more premium for this option.
|Cancer Cover Premium on Per Thousand Sum Assured|
|Age (Years)||Policy Term (Years)|
Calculation of Premium
In the first table, the values in blue colour show the premium in rupees for the sum assured of every one thousand. suppose, you want to know the premium for 10 lakhs sum assured for a 30 years old and the policy tenure is also 30 years. In this situation, the tabular premium would be 1.69. So the total premium would be ₹1,690 (1.69 x 10,00,000/1000). After adding 18% GST, it would translate into ₹1994.
Limits and Conditions
This is the most important section and you must read it carefully before buying the LIC cancer cover. You would agree that the ‘devil lies in the detail’.
Waiting Period of 180 Days
With this policy, your cancer coverage does not start with the premium payment. Rather, You have to wait for 180 days. After this period, the cover would be applicable. Note, the diagnosis of cancer should be after this waiting period. Only then you can make a claim.
No Benefit on Swift Death
The LIC would not give any benefit to the policyholder or nominee of the insured person dies within 7 days of the diagnosis.
Only One Claim For Early Stage Cancer
You can claim for early-stage cancer only once. If cancer recurs, you can’t make an early stage claim. However, you can make claim for the major stage cancer.
Only One Claim for Major Stage
You can get the claim amount only once. The insurance cover would end after you make the claim for a major stage cancer.
Limit on Total Benefit
Your total claim benefit can’t go beyond the 220% of the sum assured. As you know that this plan gives basic sum assured and monthly income for 120 months. So the total benefit including the monthly payment is restricted to 220%. It means if you have claimed for early stage and major stage benefit both, your monthly payment would be for the lesser duration.
One Claim at A time
LIC would not give benefits of multiple claim same time. If you claim for early-stage cancer and major stage cancer simultaneously, you would get benefits only of the major stage cancer.
Cancer Stage and Insurance Cover
The LIC cancer cover gives claim amount on the basis of cancer stage. If the cancer is in the initial stage and spread in a small area, you would get only 25% of the claim amount. Whereas in case of major cancer, you would get the full benefits. But how do you know that at which stage the cancer is?
The LIC cancer cover has given some parameters to identify the stage of cancer, but it is very difficult to understand the terms if you are not a doctor. Therefore, I have spent few hours to understand the stage of cancer. I would try to share it with you. I hope you would be able to understand the cancer stages.
What is Cancer
I have taken following wordings from the cancer.org. These are good to understand cancer.
Cancer can start any place in the body. It starts when cells grow out of control and crowd out normal cells. This makes it hard for the body to work the way it should.
There are many types of cancer. It’s not just one disease. Cancer can start in the lungs, the breast, the colon, or even in the blood. Cancers are alike in some ways, but they are different in the ways they grow and spread.
Three Factors Decide the Stage of Cancer
Th stage of cancer is dependant on 3 factors.
1. Size of cancer growth
Cancer starts with a tumour when some cells start behaving abnormally. The size of such infected cell is the basic parameter of the cancer stage.
2. Effect on lymph nodes
The lymph nodes filter our lymph fluids. This fluid is responsible to kill germs, virus or cancer cell within the body. If there is an infection in the body, the lymph nodes enlarge due to the hyperactivity. You may have experienced the enlarged lymph nodes (गिलटी ) in throat or groin area. There are many lymph nodes in our body.
If the cancer cells affect the lymph node, it becomes more dangerous as cancer cell can spread to other parts of the body through lymp fluids. The more lymph nodes are affected means the cancer is major.
3. Spread of Cancer Tissues
When the cancer tissues are found at more than one place, it again becomes dangerous. If there is a tumour in more than one place, it shows the spread of cancer.
Classification of Cancer
In medical terminology, these 3 factors are called as the TNM. T stands for the cancer tissue size, N for affected lymph nodes and M for the spread of the cancer tissue.
To tell the severity of these factors a number is added after these letters. If it is ‘T1’, the cancer tissue is small. ‘N0’ means cancer did not affect the lymph nodes. If it is ‘M0’, the cancer is limited to one place.
Early Stage vs Major Stage Cancer
The LIC has given a separate specification for each type of cancer. You may get confused by reading this. For simplicity, you should know that cancer would be of early stage, if –
- The cancer cells are limited to a small area.
- Any lymph nodes are not affected.
- The cancer cells are found at only one place
If the cancer tissue is big in size or spread to more than one place or affected any lymph nodes, it would be major cancer.
The information I have given is not complete. The LIC website has more details. But it gives you an idea while you want to know more about this policy. The LIC has used very difficult medical terms. The common people can’t understand that is why I have simplified it. Of course, you may require more details at the time of claim filing. So, at that time you can refer to the policy document.
You can’t claim for early-stage cancer if the tumour cells are not cancerous. Note, every tumour does not convert into cancer. You would get claim only when there is sure beginning of cancer.
The LIC would not pay the claim in following situations.
- Cancer is the result of any pre-existing condition.
- If the cancer is detected within 180 days of the policy issue.
- If patient develops cancer because of the AIDS
- It is the result of an organ donation
- The insured person develops cancer because of the Alcohol or drug-related ailments.
- Cancer is the result of radioactive effect.